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Sole Mandates Explained

Category Market News

Appointing a single property brokerage with over 250 years of collective experience and a national footprint, coupled with an unsurpassed track record and reputation which is supported by skilled professional staff - tells the market that the seller or landlord is serious about the sale or lease of their property and wants the process to be handled effortlessly and professionally. 

Overexposing the property to the market by using multiple agents, may appear desperate and could denote a lack of control.

The Benefits 

A single partnership with the right agent increases the peace of mind of the seller or landlord.

It is more beneficial to the seller to have buyers competing to offer the best market-related price than it is to have agents competing to close the deal at any cost, often putting the seller's price at risk.

For a buyer, it is very off-putting to see the same property, advertised in the same online space, but with conflicting images, prices and details. Marketing the same property differently leads to confusion in the marketplace. Buyers should have the confidence that the agent wants to close the deal as much as they do, but has an ethical obligation, as outlined by the Estate Agents Code of Conduct, to represent the correct market-related value with integrity.

Reducing Risk

Unfortunately, many agents will over-value properties in order to get a mandate. If you have been presented with two or more radically different prices from agents, interrogate them on how they got to that price - because, usually, one of them is wrong. Find out how they obtained their market condition information. Swindon offers a professional valuation service to its clients in order to achieve the most accurate valuation, with a comprehensive motivation. 

There is an obligation for a buyer to use the first agent with whom they viewed a property, however, buyers go out with as many agents as they can.  Regrettably, there are agents who will discourage a buyer who is keen on a property simply because they weren't the first to show it to them.

Appointing an Agent  

Agents will bring you their comparative marketing and price, however, don't forget that the business relationship between you and your agent is equally important and that markets are volatile - a professional agent will know how to react and operate in markets where properties for sale are in high demand or oversupply.

Other important factors to enquire of your potential agent include asking whether their company has a culture of ongoing training, extensive admin support and a dedicated research department that gives insight into the latest market trends. Finding out whether their marketing decisions and methodologies are driven by data is another good question.  

For instance, are they able to supply you with personalised knowledge about your property and area? Do they have in-depth strategies regarding today's digital journey for marketing a property? If they are a large organisation, are their offices and agents connected through a referral system that might benefit you?

Partnering with Your Agent

Many sellers are averse to Sole Mandates because of past experiences. Nine times out 10, poor service in real estate transactions, equates to poor communication. 

At Swindon, the agent and seller establish their expectations up front, especially when it comes to the 'how and when' of how to manage the feedback process.

The exclusivity of this relationship allows the seller to hold the agent fully accountable for results and also, in the process, giving both parties the time to agree to any changes to the marketing and pricing strategy.

Preferential Treatment

Entering into a Sole Mandate agreement with Swindon Property guarantees that your property will receive preferential treatment from both the agent and Swindon. 

Resources will be dedicated to marketing your property and it is in the interests of all parties to ensure that a successful sale or lease of the property is completed within the mandate period.

Your Privacy Guaranteed

A Sole Mandate is essentially your protection against the reams of other agents who will contact you once they become aware that your property is on the market. They can all be referred back to your appointed Swindon agent.

Bigger Marketing Focus

A Sole Mandate ensures that there is sufficient time to plan a professional marketing campaign for the property and that a constant flow of information and advice is passed to the seller or landlord, during the marketing period. Naturally, buyers or tenants will be exposed to your property first as your agent is secure in the knowledge that no other agent has access to the property.

Rest assured that it is in the interests of your agent to expose your property to all possible potential buyers or tenants. They will be happy to make an appointment to show your property to any buyer or tenant and will negotiate an introduction fee with another broker should this be necessary. 

It is as important to remember that neither buyers nor tenants have mandates with any brokerage. They will contact an external brokerage who is marketing a property that suits their needs.

Financial Control

A Sole Mandate is also the only manner in which you can control agent commission. It allows only one agent the mandate to sell or lease your property and ensures that there can be no claims of introducing a buyer or tenant by another brokerage. A mandate guarantees that you will never be faced with a commission dispute which, could delay the sale or lease and cost you money.

Agreeing to a Sole Mandate

A Sole Mandate is a formal instruction to Swindon to have the exclusive right to sell a client's property for a period of time.

If you are considering selling, buying or letting commercial or industrial property, we recommend assigning Swindon Property to find out more about your area and obtain the best professional advice.

Author: Swindon Property

Submitted 17 Sep 19 / Views 103